Filing for Chapter 11 bankruptcy is a process of relief available to businesses, corporations, partnerships etc. When a business becomes unable to pay its creditors, yet desires to continue operation, Chapter 11 is an important option to consider. Filing under this Chapter allows the business to terminate, amend and/or modify certain liabilities that may have become burdensome to the business. Although Chapter 11 is normally considered a business bankruptcy, individuals may also file under Chapter 11. Most individuals wishing to reorganize their debts file under Chapter 13. However if your unsecured debt exceeds $360,475 or your secured debt exceeds $1,081,400, you would be required to proceed under Chapter 11.
Chapter 11 Bankruptcy can last anywhere from months to years depending on the complexity of the business environment. To discuss the process of Chapter 11, please contact Skrupa Law Office to schedule a free consultation.